H.B. No. 1543
 
 
 
 
AN ACT
  relating to methods to enhance the enforcement of the collection of
  the use tax due on certain off-highway vehicles purchased outside
  this state; providing a civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 151, Tax Code, is amended by adding
  Subchapter I-2 to read as follows:
  SUBCHAPTER I-2. REPORTS BY MANUFACTURERS OF CERTAIN OFF-HIGHWAY
  VEHICLES PURCHASED OUTSIDE THIS STATE
         Sec. 151.481.  DEFINITIONS. In this subchapter:
               (1)  "Manufacturer" means a person that manufactures
  off-highway vehicles and is required to hold a manufacturer's
  license under Chapter 2301, Occupations Code.
               (2)  "New off-highway vehicle" means an off-highway
  vehicle that has not been the subject of a retail sale.
               (3)  "Off-highway vehicle" has the meaning assigned by
  Section 501.0301, Transportation Code.
         Sec. 151.482.  REPORTS BY MANUFACTURERS.  (a)  The
  comptroller shall require each manufacturer to file with the
  comptroller a report not later than March 1 of each year listing
  each warranty issued by the manufacturer for a new off-highway
  vehicle that was, during the preceding calendar year, sold to a
  resident of this state by a retailer located outside this state.
  The report must:
               (1)  be in a form prescribed by the comptroller; and
               (2)  contain, at a minimum, the following information
  for each warranty:
                     (A)  the vehicle identification number of the
  vehicle;
                     (B)  the make, model, and model year of the
  vehicle; and
                     (C)  the name and address, including street name
  and number, city, and zip code, of the purchaser of the vehicle.
         (b)  As soon as practicable after receiving a report
  submitted under this section, the comptroller shall use the
  information in the report to investigate and collect any unpaid use
  taxes imposed under Subchapter D on an off-highway vehicle
  described in the report.
         Sec. 151.483.  RULES. The comptroller may adopt rules as
  necessary to implement this subchapter.
         Sec. 151.484.  CONFIDENTIALITY. Except as provided by
  Section 111.006, information contained in a report required to be
  filed by this subchapter is confidential and not subject to
  disclosure under Chapter 552, Government Code.
         Sec. 151.485.  CIVIL PENALTY. (a) If a manufacturer fails
  to file a report required by this subchapter or fails to file a
  complete report, the comptroller may impose a civil penalty under
  Section 151.703(d).
         (b)  In addition to the penalty imposed under Subsection (a),
  a manufacturer shall pay the state a civil penalty of not less than
  $25 or more than $2,000 for each day a violation continues if the
  manufacturer:
               (1)  violates this subchapter; or
               (2)  violates a rule adopted to administer or enforce
  this subchapter.
         Sec. 151.486.  ACTION BY TEXAS DEPARTMENT OF MOTOR VEHICLES.
  If a manufacturer fails to file a report required by this subchapter
  or fails to file a complete report, the comptroller may notify the
  Texas Department of Motor Vehicles of the failure and the
  department may take administrative action against the manufacturer
  for the failure under Chapter 2301, Occupations Code.
         Sec. 151.487.  AUDIT; INSPECTION. The comptroller may
  audit, inspect, or otherwise verify a manufacturer's compliance
  with this subchapter.
         Sec. 151.488.  ACTION BY ATTORNEY GENERAL; VENUE; ATTORNEY'S
  FEES. (a) The comptroller may bring an action to enforce this
  subchapter and obtain any civil remedy authorized by this
  subchapter or any other law for the violation of this subchapter.
  The attorney general shall prosecute the action on the
  comptroller's behalf.
         (b)  Venue for and jurisdiction of an action under this
  section is exclusively conferred on the district courts in Travis
  County.
         (c)  If the comptroller prevails in an action under this
  section, the comptroller and attorney general are entitled to
  recover court costs and reasonable attorney's fees incurred in
  bringing the action.
         SECTION 2.  Subchapter B, Chapter 501, Transportation Code,
  is amended by adding Section 501.0301 to read as follows:
         Sec. 501.0301.  CERTAIN OFF-HIGHWAY VEHICLES PURCHASED
  OUTSIDE THIS STATE. (a) In this section:
               (1)  "Off-highway vehicle" means:
                     (A)  an all-terrain vehicle or recreational
  off-highway vehicle, as those terms are defined by Section 502.001;
                     (B)  a motorcycle, as that term is defined by
  Section 541.201, other than a motorcycle described by Section
  521.001, that is designed by the manufacturer for off-highway use
  only; or
                     (C)  a utility vehicle, as that term is defined by
  Section 663.001. 
               (2)  "Retailer" has the meaning assigned by Section
  151.008, Tax Code.
         (b)  A county assessor-collector may not issue a title
  receipt and the department may not issue a certificate of title for
  an off-highway vehicle purchased from a retailer located outside
  this state and designated by the manufacturer as a model year that
  is not more than one year before the year in which the application
  for title is made unless the applicant for the title delivers to the
  assessor-collector or the department, as applicable, satisfactory
  evidence showing that the applicant: 
               (1)  has paid to the comptroller the applicable use tax
  imposed on the vehicle under Subchapter D, Chapter 151, Tax Code; or
               (2)  is not required to pay any taxes described by
  Subdivision (1).
         (c)  The comptroller shall promulgate forms to be used by
  each county assessor-collector for purposes of implementing this
  section.
         (d)  The comptroller may adopt rules as necessary to
  implement this section, including rules that define "satisfactory
  evidence" for purposes of this section.
         SECTION 3.  Not later than March 1, 2020, a manufacturer
  shall submit the first report required by Subchapter I-2, Chapter
  151, Tax Code, as added by this Act.
         SECTION 4.  Section 501.0301, Transportation Code, as added
  by this Act, applies only to an application for title that is filed
  on or after March 1, 2020. An application for title that is filed
  before March 1, 2020, is governed by the law in effect on the date
  the application was filed, and the former law is continued in effect
  for that purpose.
         SECTION 5.  (a) As soon as practicable after the effective
  date of this Act, the comptroller of public accounts shall
  establish a work group composed of members determined by the
  comptroller and the Tax Assessor-Collectors Association of Texas
  for the purpose of assisting the comptroller in developing the
  forms required by Section 501.0301(c), Transportation Code, as
  added by this Act.
         (b)  Not later than March 1, 2020, the forms described by
  Subsection (a) of this section shall be completed and distributed
  to each county assessor-collector in this state.
         (c)  This section expires and the work group established
  under Subsection (a) of this section is abolished April 1, 2020.
         SECTION 6.  This Act takes effect September 1, 2019.
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1543 was passed by the House on April
  30, 2019, by the following vote:  Yeas 129, Nays 14, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1543 was passed by the Senate on May
  17, 2019, by the following vote:  Yeas 29, Nays 2.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor